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Refinancing is a common term in the mortgage world. If you’re considering this, it’s better to understand the process fully and see if it fits you. Read on to see what mortgage refinancing is all about.

Refinancing is a common term in the mortgage world. If you’re considering this, it’s better to understand the process fully and see if it fits you. Read on to see what mortgage refinancing is all about.

What is mortgage refinancing?

Put in simple terms, mortgage refinancing is changing the terms of your current mortgage plan to benefit from better interest rates and premium value. Essentially, you can choose to refinance with your current lender or a new one.
The first loan is paid off by the second lender and a new contract comes into force. You can choose to borrow more money against the equity collected in your home.

When should you consider refinancing?

Refinancing can be a good option in the following scenarios:

  •  The interest rates are very low
  •  You want to renovate your home
  •  Education expenses
  •  Medical expenses
  •  Investment

Ottawa residents refinance their mortgage consistently with the help of brokers like Ontario Lending.

Since a refinance essentially means you’re starting your mortgage again, most people are hesitant to go through with it. However, in certain situations, it proves to be the smarter option.

In some cases, the interest rate has been at an all-time low and people have rightly chosen to refinance their current mortgage to take advantage of it. A broker can help you understand the difference between the current plan and the refinance plan. This decision should purely be based on how much you will be saving.

Most of us want to improve our home, go on extravagant vacations or simply buy a second house. All of this can be done with a simple mortgage refinance. It can even be used to cover educational and medical expenses with ease. Business investments can also be financed with the help of the money obtained by refinancing.

Make use of your equity, refinance the mortgage on your Ottawa home with expert help. Contact us now!

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